Marc Faber Warning: ’87 Type Crash in Next 12 Months…..

Posted by Marc Faber: The Gloom, Boom & Doom Report

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The Technical picture of the (Stock) Market is not very good.

 “Credit expansion and money printing hasn’t filtered much to ordinary people. It’s boosted asset markets, real estate and stocks,” “So well-to-do-people have done very well. High-end restaurants are packed. Now, some money flows to people who are serving there, because well-to-do people give generous tips, but ordinary people have a much higher cost of living increase than 2 percent.”
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“We’ve had a bull run since October 2011 without more than an 11 percent correction,” he notes. “And now we’re probably not going to get a correction, but more likely, a bear market that will be 20 to 30 percent at some point.””so the technical picture of the market is not very good.” “the U.S. is the most pricey market compared to other markets in the world,”

Stock Market : A 87-type Crash in the next 12 months

“I think it’s very likely that we’re seeing, in the next 12 months, an ’87-type of crash,” Faber said with a devious chuckle on Thursday’s episode of “Futures Now.” “And I suspect it will be even worse.””I think there are some groups of stocks that are highly vulnerable because they’re in cuckoo land in terms of valuations,” Faber said. “They have no earnings. They’re valued at price-to-sales. And this is not a good metric in the long run.”
 

The Big Surprise will be that The Global Economy slows down and goes into Recession

“Their [American consumers] cost of living have gone up more than the salary increases, so they’re getting squeezed. So that’s why retailing is not doing particularly well.” A real black swan event, would be a global recession. “The big surprise will be that the global economy slows down and goes into recession. And that will shock markets.”

In an Interview with FOX Business Network Dr. Marc Faber said that Gold Has Bottomed and that the geopolitical issues may well stretch beyond Iraq and Gaza
“basically I always own some shares, most of my shareholdings are in Asia. … I would own some gold, because I think the gold market has bottomed out. Year to date the junior gold mining index is up 40 percent.” 

 Gold Has Bottomed

“There has been some reaction [in Europe] but there hasn’t been much reaction in the U.S. yet,” he says. “I think that geopolitical issues will become more important. At the present time what is dominating the geopolitical discussion is what is happening in the north of Iraq, ISIS and in the Gaza stretch and in Syria but it could spread out to Saudi Arabia. Because, don’t forget Saudi Arabia is a huge border with Iraq and also it could spread out into Turkey and then it obviously wouldn’t be very favorable for global trade.” “basically I always own some shares, most of my shareholdings are in Asia. … I would own some gold, because I think the gold market has bottomed out. Year to date the junior gold mining index is up 40 percent.” 

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Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.